U.S. Retired Expats -- is there really any good reason to worry about your credit score any more?

[Jingthing]

1 minute ago, NanLaew said:

Thanks for that clarification. Nice quirk if you qualify!

 

Don't the credit bureau's need an address(es) in order to assess one's credit history? In the UK, if one registers on the voter's roll (confirms one's fixed abode?), it apparently works towards enhancing one's credit rating.

Well the U.S. credit reports always include your current and former addresses. 

BTW, SDFCU shows your current credit score every time you log in. 

[TallGuyJohninBKK]

What Happens if You Don't Use Your Credit Card?

Make sure you use your card often enough to avoid the issuer closing it, which can hurt your credit score.

...

"If you haven't used a card for a long period, it generally will not hurt your credit score. However, if a lender notices your inactivity and decides to close the account, it can cause your score to slip. That's because losing a source of credit can affect your credit utilization ratio – the percentage of your total available credit you're using.

 

And if the card is one of your oldest, closing it can hurt the length of your credit history, which accounts for 15% of your FICO score. That can bring down the average age of the accounts in your credit report and lower your credit score."

 

https://money.usnews.com/credit-cards/articles/what-happens-if-you-dont-use-your-credit-card

 

 

 

5 Things That May Hurt Your Credit Scores

...

5.    Stopping your credit-related activities for an extended period 

 

If you haven't used your credit accounts for months, and your lenders and creditors have reported no new information to credit bureaus, it may make it more difficult for lenders and creditors to evaluate your application for credit or services. 

 

Also, after a certain period of time, which varies depending on the lender or creditor’s policies, your credit card account may be considered “inactive” and closed by the lender.  That, in turn, may impact credit scores in the same ways as if you had closed the account."

 

https://www.equifax.com/personal/education/credit/score/5-things-that-may-hurt-your-credit-scores/

 

 

[NanLaew]

30 minutes ago, Jingthing said:

Well the U.S. credit reports always include your current and former addresses. 

BTW, SDFCU shows your current credit score every time you log in. 

That's your account login where you have an address on file with them? I wonder what shows as their credit score when a new customer who has not supplied an address logs in?

[Yellowtail]

11 minutes ago, NanLaew said:

That's your account login where you have an address on file with them? I wonder what shows as their credit score when a new customer who has not supplied an address logs in?

I think he means the addresses on the credit report. 

[TallGuyJohninBKK]

I'm reading several sources that indicate a U.S. person with prior credit activity and scoring who later ceases all U.S. credit activity can become something called "credit invisible" -- meaning the agencies will no longer calculate a current score for them -- because of a lack of recent activity.

 

"Whether you’re young, new to the U.S., don’t have recent credit activity, or have have what’s known as a “thin” credit file, the major credit bureaus may simply not have enough information to compile your credit scores.

...

So if you’ve opened a credit account in the past, you probably already have a credit report. But you’ll only see a score if your report shows recent activity — generally within the last 24 months.

...

Most scoring models look for activity within the last two years. If you’ve had credit in the past but no longer use credit cards, or you have closed accounts on your report, there won’t be recent activity to produce a score for you."

 

https://www.creditkarma.com/credit-cards/i/if-you-dont-have-a-credit-score

 

 

What Does It Mean to Be ‘Credit Invisible’?

"Over 20% of American adults find themselves more or less in this condition, according to the Consumer Financial Protection Bureau (CFPB).¹ The reasons vary. Eleven percent have no information on file with the credit bureaus, while the other 12% have a file that the bureaus consider “thin” or “stale.” Some people have no credit score because they’re very young and never had much chance to use credit. Others haven’t used credit for a few years."

 

https://www.americanexpress.com/en-us/credit-cards/credit-intel/zero-credit-score/

 

All of the above suggests a person who may have had a good credit rating in the U.S. in the past -- but then ceased all U.S. credit reporting activity during years living abroad -- can't simply restart with their old score from many years back if they end up deciding to return to the U.S. Because they won't have had any recent U.S. credit reporting activity to base a valid current credit score on.

[Jingthing]

21 minutes ago, TallGuyJohninBKK said:

I'm reading several sources that indicate a U.S. person with prior credit activity and scoring who later ceases all credit activity can become something called "credit invisible" -- meaning the agencies will no longer calculate a current score for them -- because of a lack of recent activity.

 

"Whether you’re young, new to the U.S., don’t have recent credit activity, or have have what’s known as a “thin” credit file, the major credit bureaus may simply not have enough information to compile your credit scores.

...

So if you’ve opened a credit account in the past, you probably already have a credit report. But you’ll only see a score if your report shows recent activity — generally within the last 24 months.

...

Most scoring models look for activity within the last two years. If you’ve had credit in the past but no longer use credit cards, or you have closed accounts on your report, there won’t be recent activity to produce a score for you."

 

https://www.creditkarma.com/credit-cards/i/if-you-dont-have-a-credit-score

 

 

What Does It Mean to Be ‘Credit Invisible’?

"Over 20% of American adults find themselves more or less in this condition, according to the Consumer Financial Protection Bureau (CFPB).¹ The reasons vary. Eleven percent have no information on file with the credit bureaus, while the other 12% have a file that the bureaus consider “thin” or “stale.” Some people have no credit score because they’re very young and never had much chance to use credit. Others haven’t used credit for a few years."

 

https://www.americanexpress.com/en-us/credit-cards/credit-intel/zero-credit-score/

 

All of the above suggests a person who may have had a good credit rating in the U.S. in the past -- but then ceased all U.S. credit reporting activity during years living abroad -- can't simply restart with their old score from many years back if they end up deciding to return to the U.S. Because they won't have had any recent U.S. credit reporting activity to base a valid current credit score on.

Yeah, that makes sense.

In my case I do use my U.S. credit card monthly so no danger of falling off the cliff doing that.

Reminds me of a conversation I had with my car insurance company which I cancelled before moving abroad. I had a long good record with them and got discounts because of that. I made a comment, well if I move back that status will be gone. The rep said no we wouldn't do that. I didn't believe her. 

[Yellowtail]

8 minutes ago, Jingthing said:

Yeah, that makes sense.

In my case I do use my U.S. credit card monthly so no danger of falling off the cliff doing that.

Reminds me of a conversation I had with my car insurance company which I cancelled before moving abroad. I had a long good record with them and got discounts because of that. I made a comment, well if I move back that status will be gone. The rep said no we wouldn't do that. I didn't believe her. 

Do you maintain your US driver license? If so, you should have a nice clean record anyway. 

 

 

 

[Jingthing]

2 hours ago, Yellowtail said:

Do you maintain your US driver license? If so, you should have a nice clean record anyway. 

 

 

 

Sadly no.

[Yellowtail]

12 minutes ago, Jingthing said:

Sadly no.

I think I've been renewing my CA DL online since the late '90s. Almost had to go in to renew as I was over sixty a few years ago, but the DMV was closed for covid so I got another five years...

[Jingthing]

2 minutes ago, Yellowtail said:

I think I've been renewing my CA DL online since the late '90s. Almost had to go in to renew as I was over sixty a few years ago, but the DMV was closed for covid so I got another five years...

Wasn't able to keep renewing online in my last state.

The insurance perk was about loyalty to that company and also no accidents while with them.

[Yellowtail]

2 minutes ago, Jingthing said:

Wasn't able to keep renewing online in my last state.

The insurance perk was about loyalty to that company and also no accidents while with them.

Do you have a Thai DL? I think you can drive on that for 90 days in the US. I think rental car insurance is cheaper with the Thai DL as well. 

[Jingthing]

Just now, Yellowtail said:

Do you have a Thai DL? I think you can drive on that for 90 days in the US. I think rental car insurance is cheaper with the Thai DL as well. 

No

[connda]

On 7/30/2023 at 5:24 PM, Yellowtail said:

About part Medicare B, I enrolled and maintain this because I like to visit the US for about a month a year, and in the event I end up repatriating. 

 

That said, if one's only income is Social Security and they have no real savings, I doubt it is worth paying for as I think they would qualify for further assistance. 

 

If one does have some savings, in the event they repatriated I think they could dump the savings in to buying a home, qualify for the assistance and hold onto their saving in equity.

Here's my thought.  If I'm diagnosed with a fatal diseases with a life expectancy in the 12 to 18 month range, I flip a coin and hope I can get into the zone where I can apply for Part B and Part D to cover hospice care which is mostly covered by Part A.

There is always option B: Become a member of the Pattaya Sky-Diver Club.

I'm not looking for Medicaid to for anything but end-of-life care.  Of course, that assumes I can still get on a plane.  Unlike most people here, I just want to address the pain (palliative care) which Thailand sucks at, and call it a life.  Most people I know want to live no matter what and being "survivors" and live into their 90s. 
I don't.
The problem with the US is health care costs are "stupid expensive." Example:
My wife just got Covid.  A Molnupiravir prescription is free (well 30 THB).  I haven't priced it here in Thailand for me from a government hospital,  but I'd expect a generic course of treatment to cost maybe 500 THB.  (I'll have to check).  Not that I'd want it.
In the US $850 USD $$$CHA-CHING$$$.  That's amoral imho, yet pharmaceuticals gouge US citizens to the max - especially Medicare patients. And the US government allows them to do it.
That's corruption in my opinion.

But - If I'm dying but have time to make arrangements?  OK.  I'll purchase Medicare, move back to the US and croak. 
If I can't?  Rope, high buildings, and other methods of "Palliative Care" are available when the Thai Health Networks refuse to provide actual "Palliative and Hospice Care." 

God - I hope it doesn't come down to that, but I'm mentally prepared if it does.

[Jingthing]

2 hours ago, connda said:

Here's my thought.  If I'm diagnosed with a fatal diseases with a life expectancy in the 12 to 18 month range, I flip a coin and hope I can get into the zone where I can apply for Part B and Part D to cover hospice care which is mostly covered by Part A.

There is always option B: Become a member of the Pattaya Sky-Diver Club.

I'm not looking for Medicaid to for anything but end-of-life care.  Of course, that assumes I can still get on a plane.  Unlike most people here, I just want to address the pain (palliative care) which Thailand sucks at, and call it a life.  Most people I know want to live no matter what and being "survivors" and live into their 90s. 
I don't.
The problem with the US is health care costs are "stupid expensive." Example:
My wife just got Covid.  A Molnupiravir prescription is free (well 30 THB).  I haven't priced it here in Thailand for me from a government hospital,  but I'd expect a generic course of treatment to cost maybe 500 THB.  (I'll have to check).  Not that I'd want it.
In the US $850 USD $$$CHA-CHING$$$.  That's amoral imho, yet pharmaceuticals gouge US citizens to the max - especially Medicare patients. And the US government allows them to do it.
That's corruption in my opinion.

But - If I'm dying but have time to make arrangements?  OK.  I'll purchase Medicare, move back to the US and croak. 
If I can't?  Rope, high buildings, and other methods of "Palliative Care" are available when the Thai Health Networks refuse to provide actual "Palliative and Hospice Care." 

God - I hope it doesn't come down to that, but I'm mentally prepared if it does.

This topic just got very dark!

[Yellowtail]

3 minutes ago, andy said:

I don't give a rats about my credit score, just the thought of moving back makes me physically ill - and since I don't have enough SS credits for Medicare, better stay out of the US if I'm going to be ill.

 

Funny thing though, my bank app will show you your credit score each month.  Last time I checked?  840 ????  I think it tops out at 850...

 

I have a cc that gives me 3% cash back on all travel related expenses and no foreign conversion fee.  I'm not giving that up anytime soon.

 

You don't need points to get Medicare when you're 65

[Jingthing]

6 minutes ago, Yellowtail said:

You don't need points to get Medicare when you're 65

Part A for free, you do.

 

Medicare work credits: Options, eligibility, and costs (medicalnewstoday.com)

[NanLaew]

On 7/31/2023 at 3:25 PM, Yellowtail said:

I think he means the addresses on the credit report. 

Where do the credit agencies get this address information on ANYONE from?

 

Now back to the hypothetical customer who now lives overseas and has successfully opened an account at the SDFCU with NO home address information requested or given. What would show as his credit score when he logs in?

[Jingthing]

38 minutes ago, NanLaew said:

Where do the credit agencies get this address information on ANYONE from?

 

Now back to the hypothetical customer who now lives overseas and has successfully opened an account at the SDFCU with NO home address information requested or given. What would show as his credit score when he logs in?

 

If someone hasn't been an expat for a very long time they likely still have a credit report that shows their U.S. address record.

Reporting agencies get address information from credit applications. 

I don't have a clue how SDFCU would view an application for a new account from an American with no credit record.

They do reject applications and they don't need to say why. 

 

[heybruce]

8 hours ago, Jingthing said:

 

If someone hasn't been an expat for a very long time they likely still have a credit report that shows their U.S. address record.

Reporting agencies get address information from credit applications. 

I don't have a clue how SDFCU would view an application for a new account from an American with no credit record.

They do reject applications and they don't need to say why. 

 

I lived in Thailand for 12 years and could never figure out how to accurately report it as my permanent address.  I contacted the US Embassy and asked; while I don't recall the exact answer it was something like "Don't bother, just use any convenient US address."

[Skipalongcassidy]

On 7/30/2023 at 1:31 PM, Jingthing said:

Never say never.

Plans are plans.

Predicting the future is something else.

Paying the Part B doesn't really change my quality of life in Thailand. I know it will probably end up being a massive waste of money.

That's an individual choice expats need to make.

I don't think there is a right or wrong answer for all on that.

 

You could always drop it fr now... if you ever go back just pay the penalty and pick it up again... cheaper in the long run

[Yellowtail]

7 hours ago, heybruce said:

I lived in Thailand for 12 years and could never figure out how to accurately report it as my permanent address.  I contacted the US Embassy and asked; while I don't recall the exact answer it was something like "Don't bother, just use any convenient US address."

Do you not use your Thai address when you file your taxes? 

[Jingthing]

6 hours ago, Skipalongcassidy said:

You could always drop it fr now... if you ever go back just pay the penalty and pick it up again... cheaper in the long run

Well I get that concept. Each year an expat does pay Part B is another year he won't be subject to that year's penalty if repatriating. So it doesn't need to be an all or nothing thing. 

Another point. Probably the main reason retired people do unplanned repatriations is related to declining health. For US people we've got Medicare back home. So if you're going back for an end of life thing whether it be days, months, or years, the time of your penalty is limited that way.

[Jingthing]

1 hour ago, Yellowtail said:

Do you not use your Thai address when you file your taxes? 

I'll answer that.

I use my Thai address when it benefits me and I also use my U.S. address when it benefits me.

Hoping there isn't too much communication going on, ha ha.

So I file with my Thai address.

It gets automatic filing extensions and cleanly divorces me from my last U.S. state which isn't a no state income tax state.

[heybruce]

18 hours ago, Yellowtail said:

Do you not use your Thai address when you file your taxes? 

I always use the US address for anything of importance in the US, such as taxes.  I've had mail go missing between the US and Thailand.  If there was anything of importance I had to receive from the US I had someone send it to me by FedEx or something similar.

 

It wasn't that difficult having a US and Thai address.  I was worried that I might be breaking the law, but with the response from the embassy I assumed I was in the clear, or at least had cover if the law ever questioned my dual address status.

[ChaiyaTH]

Not from the USA but in Europe where I am from we do not really do credit cards anyway, if any it is not much more than 5K. Almost all people save money for a car or start in a cheap second hand one from as little as 1000-1500. 

Credit score would be most important for a mortgage but that would also require I first take a permanent job for like 4 years again, with a Business it takes maybe even longer or the mortgage itself is much less. The Thai wife won't bring in much too I assume.

I think I would more likely consider to have real estate in Thailand, to off set the rent in Europe, if it would come to living there longer. So for credit rating I actually care very little, I care more about having cash on my own, or off set the costs with dividends.

[mania]

On 7/29/2023 at 8:31 PM, Jingthing said:

Never say never.

Plans are plans.

Predicting the future is something else.

Paying the Part B doesn't really change my quality of life in Thailand. I know it will probably end up being a massive waste of money.

That's an individual choice expats need to make.

I don't think there is a right or wrong answer for all on that.

 

True we never know but....

 

Unless your fortunate enough to be maxing out SS benefit amount or have big income from elsewhere you would not be liable for Part B if returning to USA. Instead you would qualify for Medicaid who would pay both your Part B & also part D

[kokesaat]

Never say 'never'.  We lived in Thailand for 26 years, always figured we'd finish up floating down the Mekong. Then older age set in and we jumped on an opportunity  to assume a 2.65% VA loan in a  desireable neighborhood near  our daughter.  Some of the hoops that we had to jump through:

-Good credit score.....check. I guess that was the result of maintaining/occasionally using a  US credit card over the 26 years.....airfares, diesel, vacations, NYT subscription

-Tax returns for the past 5 years.

-Certificate of eligibility from the VA (obtained online)

-A most difficult  time making the  mortgage company understand that we lived in a house in the jungle where I wasn't the owner, I didn't have a deed, I wasn't paying rent, I didn't have utility bills or a vehicle in my name.

- I did maintain a US driver's license with our daughter's address.

- We both paid into medicare part B so no issues when we moved back to the US.

What should  have been a 60-90 day closing on our home ended up taking 5 months.  We moved to Thailand in 1996 with 2 suitcases each and moved back to the US with 2 each.  

Our main lesson learned:  Never say 'never'.

 

 

[GypsyT]

"Credit Rating Craziness in the US"

I've had credit cards for 40+ years in the States. Never missed to pay balance IN FULL. Never paid a dime on interest.

 

This year I wanted to open Hi Interest accounts at two different banks and make a large 12m deposits. My rating was 870 but I was turned down on both!

 

The reason? Since I haven't have loans for 38 yrs my rating is bad! Or there is no rating at all. All 3 rating companies said that and sent me a copy of my record.

Their stupid system gives rating ONLY on loans, they don't care anything else. Like large deposits in the banks or properties you own scot-free.

All that was new to me.

 

I ended up putting money to a regular Discover checking account which pays well and also to Chase 12m CD with low rate. Chase was the only one letting me to open a CD.

 

Lesson learned; DON'T get rich in the America and DON'T pay all bills in time!

If you do you are outcast...